Money. The almighty dollar. Cold, hard cash.
Whatever you call it, money plays a vital role in sustaining your needs and fueling your goals. However, it can be a double-edged sword.
If you don’t have the right strategy in place to make your finances grow, the cycle of earning and spending money can feel like you’re stuck in a revolving door. You work hard for your money—why not make it work hard for you?
Today I want to share the six ways you can achieve just that.
1. Save consistently. This might sound elementary, but it’s a lot easier said than done. The most efficient way to save is to make your savings automated. Set up your online banking so that each time you get paid, a portion will go into savings. Interest rates on traditional savings accounts are quite low, however. You may want to think about a high-yield savings account.
2. Use credit cards strategically. Credit cards can be either harmful or helpful to your finances. If you are strategic, you can both build credit and earn rewards that you can use for food, clothes, travel, or even in the form of earning cash back. You could even put the cash you earn back into savings. Choose a card with strong rewards and use it for daily expenses. Then, pay it off consistently. Using credit cards responsibly and without overspending is key. The latest gadgets may be cool, but debt is absolutely not.
3. 401(k) matching. If your employer offers 401(k) matching, maximize the full amount they are willing to contribute to take advantage of free retirement money. Let’s say your employer will match your contributions dollar for dollar up to $1,500. If you take full advantage, you could double that money.
4. Opening an IRA. IRAs, or individual retirement accounts, are another great way to grow your money. IRAs are tax-advantaged investment accounts that are specifically designed to help you with retirement. There are two types of IRAs: traditional and Roth. With traditional, you contribute pre-tax dollars. These funds get taxed when you withdraw them in retirement. With a Roth IRA, the money you contribute is after tax, meaning it will not be taxed when you withdraw it.
5. Purchase real estate. Homeownership is one of the smartest ways to build your wealth. Owning a home helps you build equity. Equity is a valuable asset that you can utilize later on. Also, if you are already a homeowner, you can use a rental property as an additional source of income.
6. Private reserve banking. This whole life insurance strategy is designed to develop or improve your financial position. This is achieved by avoiding unnecessary wealth transfers. Imagine if you never had to rely on a bank to finance your life. Only a handful of companies offer these policies, and you’ll want to make sure your agent is well informed about them.
If you have any other questions or would like more information, feel free to give me a call or send me an email. You can also contact me if you have any video ideas. If we use your idea, we will thank you with a gift card. I look forward to hearing from you soon.